The Japanese government approved on Friday a new stimulus package totaling 21.3 trillion yen (135.4 billion dollars), aimed at supporting economic growth and softening the impact of US tariffs and rising consumer prices, according to AP and Agerpres.
The announcement comes as Japan faces pressure on its export sector. Government data released Friday shows that shipments to the United States fell for the seventh consecutive month in October, while exports to the rest of the world increased by 3.7%, driven mainly by demand from Asia.
The package includes subsidies for energy costs, a temporary reduction of the gasoline tax, and several measures meant to support households in coping with inflation. Core inflation, which excludes volatile items such as food and energy, reached 3% in October—above the Bank of Japan’s target of around 2%.
Support measures include a one-time payment of 20,000 yen (about 130 dollars) per child, as well as 3,000-yen vouchers (about 20 dollars) for rice and other essential goods, to be distributed by local authorities.
Tokyo estimates that the stimulus package will boost Japan’s GDP by 24 billion yen (155 billion dollars), equivalent to an annual growth rate of 1.4%.
Japan, the world’s fourth-largest economy, recorded an annualized contraction of 1.8% in the third quarter of 2025, marking the first drop after six quarters of expansion. The decline was driven mainly by the fall in exports following the imposition of new US tariffs.
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